CSRD Reporting for Farms: Water, Fertilisers and Livestock Emissions

Farmers and food producers are at the front line of sustainability. The Corporate Sustainability Reporting Directive (CSRD) and its companion Voluntary Sustainability Reporting Standard for SMEs (VSME) ask businesses to measure and disclose their environmental impact — and agriculture is a high-impact sector.

This guide explains how farms, cooperatives, and food producers can report on water use, fertiliser management, and livestock emissions in line with the CSRD and VSME Basic Module. For complementary guidance, see what pollutants SMEs need to measure and whether you need to disclose proximity to biodiversity-sensitive areas.

1. Why CSRD Reporting Matters for Agriculture

Agriculture and food production are central to Europe’s Green Deal and the Farm to Fork Strategy. These activities affect multiple sustainability areas covered by CSRD and ESRS:

• Water resources — irrigation, cleaning, and processing.
• Fertilisers and soil management — nutrient runoff and pollution.
• Livestock — methane and nitrous oxide emissions.
• Biodiversity and land use — habitat and soil health.

Even if most farms are not directly under the CSRD’s legal scope, they will increasingly be asked by large buyers, processors, or banks to provide sustainability data. The VSME Standard (EFRAG, 2024) offers a proportionate reporting tool for small and medium-sized agri-food businesses.

2. What Farms Need to Report Under CSRD/VSME

Farms and food producers can apply the Basic Module of the VSME Standard. It includes practical disclosures on environmental topics:

These metrics align with the CSRD’s environmental themes on climate change, pollution, and resource use.

3. Water Use and Efficiency Reporting (B6)

Water is a key sustainability issue for agriculture. Under B6 of the VSME Standard, farms must disclose:

• Total water withdrawal — all water drawn for irrigation, cleaning, or animal use (in cubic metres or litres).
• High-stress areas — the portion of that water taken from regions under high water stress.
• Water consumption — the difference between total withdrawal and discharged water (e.g. runoff, drainage).

Example for SMEs:

A fruit farm withdraws 40,000 m³ of water per year for irrigation, of which 30,000 m³ is in a high-stress region. After accounting for runoff and drainage, net consumption is 28,000 m³.

Practical tips:

• Use data from irrigation meters or supplier bills.
• Implement drip irrigation or scheduling systems.
• Track efficiency improvements year on year.

4. Fertiliser and Nutrient Management (B4)

Under B4 – Pollution of air, water and soil, farms should disclose how they manage nutrient and chemical inputs.

Report:

• Fertiliser use — total nitrogen (N) and phosphorus (P) applied annually (kg/ha).
• Use of organic vs. synthetic fertilisers.
• Runoff prevention measures, e.g. buffer strips, soil cover, or composting.
• Pesticide management, if relevant, including any certified integrated pest management (IPM) practices.

Example for SMEs:

A dairy cooperative reports using 120 tonnes of manure and 15 tonnes of mineral fertiliser annually, with 25% reduction since 2022 through precision application and nutrient mapping.

Good practice links to ESRS E2 (Pollution) and E3 (Water and marine resources), ensuring alignment with large buyers’ expectations.

5. Livestock and Greenhouse Gas Emissions (B3)

Livestock contribute significantly to Scope 1 GHG emissions (on-farm methane and nitrous oxide). Under B3, farms should estimate:

• Scope 1 emissions: from livestock (enteric fermentation, manure), on-farm fuel, and heating.
• Scope 2 emissions: from purchased electricity or cooling.
• GHG intensity: total emissions divided by turnover or production (e.g. kg CO₂e per litre of milk).

Example for SMEs:

A 300-cow dairy farm estimates 1,200 tonnes CO₂e in Scope 1 emissions and 100 tonnes CO₂e in Scope 2. It targets a 15% reduction by 2026 through feed optimisation and solar-powered milking systems.

Data sources:

• National emission factors (e.g. IPCC Tier 1 or national inventory data).
• Agricultural software tools or cooperative data.

6. Linking Practices to Transition Targets (B2 and C3)

CSRD encourages SMEs to show not only metrics but also policies and future initiatives. Farms can describe:

• Emission-reduction targets (e.g. methane per livestock unit).
• Soil and water management policies (e.g. nitrate reduction plans).
• Future initiatives — such as manure biogas recovery or reforestation.

This transparency demonstrates to lenders and supply-chain partners that your farm is managing long-term sustainability risks.

7. Collecting and Reporting Data – Practical Steps

Step 1. Map operations: Identify key inputs (energy, fertilisers, livestock, water). Step 2. Gather existing data: Utility bills, purchase records, irrigation logs, feed volumes. Step 3. Choose units: Use cubic metres for water, tonnes CO₂e for emissions, and euros for turnover. Step 4. Keep records: Create a simple Excel sheet or cooperative database to track data annually. Step 5. Prepare a summary report: Include metrics and short narrative explanations per the VSME Basic Module (B1–B11).

8. Example Disclosure Summary for a Mixed Farm (Basic Module Extract)

9. How It Connects to CSRD Compliance

The CSRD (Directive 2022/2464/EU) requires large companies to disclose environmental and climate-related impacts, and to collect information from suppliers in their value chain. Farms supplying processors or retailers will therefore need to:

• Provide reliable data on water, emissions, and fertilisers.
• Demonstrate policies and transition plans.
• Align terminology with ESRS and VSME disclosures.

Using the VSME Basic Module ensures compatibility with the ESRS structure and reduces administrative burden.

10. Benefits of Reporting for Farms

• Easier access to green finance and subsidies.
• Stronger relationships with buyers and cooperatives.
• Early readiness for future EU environmental regulations.
• Better on-farm efficiency and cost savings.

Key Terms

• CSRD – Corporate Sustainability Reporting Directive (EU 2022/2464) requiring large companies to report sustainability impacts.
• VSME – Voluntary Sustainability Reporting Standard for SMEs, published by EFRAG (2024).
• Basic Module – The minimum reporting framework for SMEs covering environmental, social, and governance metrics.
• Comprehensive Module – Optional extended reporting for SMEs engaging with investors or banks.
• ESRS – European Sustainability Reporting Standards under the CSRD.
• SME – Small and medium-sized enterprise.
• Scope 1 and 2 emissions – Direct and indirect greenhouse gas emissions from operations and energy use.
• Turnover – Total revenue from business activities during the financial year.